S VENKAT REDDY Vs. TRANSPORT COMMISSIONER

JUDGEMENT

(1.) This batch of cases is concerned the validity of the circular issued by the Point Transport Commissioner and Secretary, Regional Transport Authority, Hyderabad in No. 36/54384/D1/95 dated 22-11-1995 by which, inter alia, the Assistant Secretaries who are permit issuing authorities in respect of the transport vehicles, were requested not to issue temporary permits for transport of factory employees collecting pro-rata tax inasmuch as the need is a regular one, and that they should collect quarterly tax in advance at the time of issue of permits and keep regular DCB and keep a watch on their movement during the periods when they are not covered by permit and book cases. The petitioners are the owners of motor vehicles popularly known as Idle Contract Carriages'. They are not covered with permits to ply either as stage carriages or contract carriages for any fixed period. As and when a temporary need arises, the owner would obtain a permit under Section 87 or 88 (8) of the Motor Vehicles Act. It is not necessary to go into the ingredients of these two sub-sections since the validity of the permits is not at issue in these cases. The petitioners make available their vehicles on daily basis for hire to the private contractors, who in turn, under agreements with certain Public Sector undertakings, use these , vehicles for transporting the employees of the Corporations. Under the Motor Vehicles Taxation Act, the Government by notification is empowered to levy tax in the manner specified therein. Section 9 of the Act confers powers on the Government to grant exemption or reduce the rate or modify the tax payable by any person or class of persons in respect of any motor vehicle running in any , particular area. In exercise of the power under Section 3, the State Government ' issued G.O.Ms. No. 137 dated 22-8-1995 by which the quarterly tax per seat per passenger concerning contract carriages carrying more man six passengers on Inter-State routes on All India tourist permits was fixed at Rs. 1,051/- and in respect of the other contract carriages plying with in the home district and in one contiguous district, at Rs. 875/-. The Government also in exercise of power under Section 3 issued G.O Ms. No. 139, TR & B (Tr.II) dated 22-8-1995 reducing the rate of tax in respect of: 1. Idle Contract Carriages 2. Stage Carriages covered by basic permits , 3. Stage Carriages covered by spare permits, plying on the strength of temporary/special permits issued under Section 87 or sub-section (8) of Section 88 of the Motor Vehicles Act, 1988 as specified below: <FRM>JUDGEMENT_1032_ALT4_1996Html1.htm</FRM>

(2.) The above concessional rate of tax is subject to seven conditions specified ' therein, of which conditions 6 and 7 which are relevant read as follows: Condition No. 6:

(3.) The Joint Transport Commissioner and Secretary, Regional Transport Authority, Hyderabad, in and by the impugned circular after adverting to the fact that some Assistant Secretaries are issuing temporary permits for vehicles transporting factory employees on a regular basis and that several such breaches came to his notice, issued the following instruction: